Magna to build new factory in Austria

VIENNA - Canadian auto supplier Magna International is close to finalizing a deal with the province of Carinthia in southern Austria to build a new factory near Klagenfurt.

The new auto electronics plant would initially employ 200 workers. Magna founder Frank Stronach and Carinthia Governor Jörg Haider have reached an agreement on the plan. The amount of the investment is unknown.

Observers expect incentives to flow from the provincial government, as five locations in Austria had been competing for the factory.

It is believed that it will come under Magna's Donnelly subsidiary, not its Austria-based coachbuilding subsidiary Magna Steyr.

Donnelly is a rearview mirrors specialist. Magna International also may build a new vehicle-assembly facility in eastern Europe.